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[Alliance for Affordable Energy] [loose]
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Records of the Office of National Service (Clinton Administration)
Jim Kreidler's Files
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FOIA Number: 2013-0661-F (2)
FOIA
MARKER
This is not a textual record. This is used as an
administrative marker by the William J. Clinton
Presidential Library Staff.
Collection/Record Group: Clinton Presidential Records
Subgroup/Office of Origin:
National Service
Series/Staff Member:
Jim Kreidler
Subseries:
OA/ID Number:
1284
FolderID:
Folder Title:
[Alliance for Affordable Energy]
Stack:
Row:
Section:
Shelf:
Position:
S
66
2
5
1
FORDABLE
DATE:
April 7, 1993
FROM:
Gary L. Groesch, Executive Director
Karen F. Wimpelberg, President
ENERGY
TO:
Eli Segal
Office of National Service
604 Julia Street
White House
New Orleans, LA 70130
Washington, D.C. 20500
(504) 525-0778
FAX 525-0779
RE:
Critique of VISTA program versus Delta Service Corp
EXECUTIVE DIRECTOR
from a small, non-profit perspective
Gary L. Groesch*
RESERCH DIRECTOR
Thomas P. Lowenburg*
The Alliance for Affordable Energy is a local, non-profit, 501(c)3 organization
with a budget of under $100,000, 400 members, a staff of three, and numerous
BOARD OF DIRECTORS
Don Everard
volunteers and pro bono support mechanisms. The Alliance has been
Julius Feltus
extraordinarily successful as a "watchdog" of energy policy and educator on energy
Rev. Dr. Climon J. Smith
Emelda Washington
issues considering its relatively small size (see attached descriptions of the
Karen F. Wimpelberg
Alliance.)
Betty Wisdom
ADVISORY COMMITTEE
Walter Augustine
As part of our work, the Alliance is constantly looking for resources and labor
Geoff Baldwin
from various private industry sources, universities, and federal\state programs.
Vern Baxter, Ph.D.
Joseph Bernstein
Throughout our 7 years of existence, the Alliance has been able to utilized about
Larry Campisi
10 persons who would fall into these categories.
Ron Cuccia
Rep. Irma Dixon
Gary Esolen
In 1989 our development director first applied for help with the VISTA program.
Marina E. Espina
Mildred Fossier
Fortunately, he was familiar with VISTA from a previous job. This seemed a
Gayle Gagliano
necessary requisite because the VISTA application process was complex, frustrating
Tony Gagliano
Mark Gonzalez
and time consuming. After nearly a two year process (once VISTA lost our
Harold Green
application, forcing us to reapply), VISTA granted us 4 slots of which we elected
Harry Greenberger
Dione Harmon
to use only two. Moreover, after utilizing these VISTA's for one year, the Alliance
Tika Hasslock
elected to drop the program even though we could have renewed for several more
Arnold Hirsch, Ph.D.
Saundra MacD. Hunter, Ph.D.
years.
Irwin Isaacson
Sandy Krasnoff
The reasons for our decision were:
Steven Lindsley
David Marcello
Thomas Milliner
I.
VISTA has placed all of its power into the hands of state bureaucrats
Sen. Marc Morial
Mary Lee Orr
without apparent oversight or appellate process.
Julianna D. Padgett
A.
VISTA guidelines were voluminous and difficult to interpret.
Stuart I. Phillips, M.D.
Virginia Plauche
B.
The state bureaucracy of VISTA was ponderous, mistrustful, and
Staci Rosenberg
unhelpful.
Katherine B. Senter
Jessie Smallwood
1.
The ultimate arbiters of the guidelines were the state
Doris E. Vicknair
bureaucrats from which there seemed no appeal--even when
George Ethel Warren
August Weber
the written VISTA guidelines clearly contradicted the
Lucille Williams
bureaucrats interpretation.
Kalamu Ya Salaam
2.
Lea Young
Even though we were very careful to not contradict even
Michael E. Zimmerman, Ph.D.
*Also Board Members
ADMINISTRATION
Jacqueline H. Baron
"bureaucrat" guidelines (much less actual VISTA rule), the Alliance was
subjected to insinuations that we were using the VISTA volunteers improperly.
3.
The attitude of the state VISTA bureaucrats was unhelpful towards first time users
of the VISTA system.
4.
The monthly reports were burdensome to staff, primarily because the state VISTA
bureaucrats were unhelpful in "walking" us through the first few months but,
secondarily, because the reports required such a rigid format.
II.
VISTA's rules were too rigid to be helpful to a small, non-profit that must, at times,
respond rapidly to changing circumstances.
1.
The VISTA rules were written so that volunteers always had to maintain a "never
be seen" attitude.
2.
VISTA rules did not allow enough flexibility to change the workplans of the
volunteers, instead they preferred slavish focus on predetermined goals.
III.
Getting volunteers into the office and working was a real bag of tricks.
1.
The pool of local volunteers for VISTA was very small, and because getting a
national VISTA was dependent on getting a local VISTA, we were almost put
into the position of recruiting for VISTA--a task that the state bureaucrats should
have performed.
2.
The first local volunteer was not adequate for the job and had been inadequate in
other VISTA programs, we later found out, and we were required to document
her poor performance in order to get her replaced. A first time sponsoring
organization should not be put into a situation in which it must document the poor
performance of a previously acknowledged poor performer. She should have
been eliminated by the state VISTA office before she came to us.
3.
The amount of trouble that we had in filling one good local spot so that we could
get a national volunteer made us relinquish our option for the remaining two
volunteers that we had been assigned.
IV.
Arbitrary decisions of state VISTA bureaucrats can cost sponsoring organizations
hundreds--if not thousands--of dollars.
1.
The two VISTA volunteers assigned to the Alliance asked to travel to
Washington, D.C. in order to attend a conference on low-income energy issues.
2.
The Alliance obtained written permission from state VISTA bureaucrats
approving this travel expense.
3.
The Alliance purchased the airline tickets, booked space in a Washington hotel,
and paid the conference registration fees.
4.
Less than a week before the date of departure, the state bureaucrats retracted their
permission to travel.
5.
The Alliance required the state VISTA to pay all cost incurred up to that point--
incredibly, the state VISTA bureaucrats refused.
6.
The Alliance went ahead and sent the volunteers because otherwise the tickets,
hotel bookings, and conference fees would have been a complete loss of over
$600.
7.
The Alliance appealed the decision of the state VISTA bureaucrats to Washington,
D.C. in the first quarter of 1992--so far, there has been no decision or money
forthcoming from VISTA.
8.
Indeed, there has been no response at all.
9.
The Alliance terminated its VISTA project in October, 1992.
Obviously, it was a difficult organizational decision to once again attempt to utilize a federal
program volunteer--this time, the Delta Service Corps. Because we are a relatively new DSC
sponsor (one volunteer for two months), it is perhaps too soon to make an adequate evaluation.
Nonetheless, there are several points concerning DSC that could be made:
I.
The DSC system of assigning volunteers was more "hassle-free" than the VISTA
counterpart.
II.
The local contact is very helpful and understanding of our mission.
III.
The paperwork seems less strenuous.
IV.
DSC does not seem to mistrust us; in fact, DSC asked us to apply!
CHICE
FORDABLE
ABOUT THE ALLIANCE FOR AFFORDABLE ENERGY
The Alliance for Affordable Energy is a non-profit, public-interest, membership
ENERGY
organization in Louisiana dedicated to creating a fair, affordable, environmentally
responsible community-based energy policy locally, regionally, and nationally. The
Alliance was founded in 1985 by environmental, consumer, and civil rights advocates who
had successfully worked together for over three years to reform utility regulation. Today,
604 Julia Street
New Orleans, LA 70130
the Alliance serves New Orleans' 220,000 electric and gas rate payers, as well as rate
(504) 525-0778
payers throughout Louisiana, by promoting citizen participation in the decision-making
FAX 525-0779
process, conducting community education campaigns on energy issues, intervening in utility
rate making cases and monitoring the public policy complexities of providing utility service.
EXECUTIVE DIRECTOR
Gary L. Groesch*
Among its key accomplishments, the Alliance introduced Louisiana to the concept of
RESERCH DIRECTOR
Thomas P. Lowenburg*
least-cost energy planning which stresses energy efficiency and market-based utility resource
BOARD OF DIRECTORS
planning. "For the better part of a decade, the Alliance has been in the forefront nationally
Don Everard
in advocating and fashioning an innovative approach to least-cost utility planning The
Julius Feltus
Alliance continues to show how least-cost planning and energy efficiency policies can lower
Rev. Dr. Climon J. Smith
Emelda Washington
utility bills, foster economic growth, advance community development, and generate jobs,"
Karen F. Wimpelberg
said nationally recognized energy economist Charles Komanoff.
Betty Wisdom
ADVISORY COMMITTEE
The Alliance for Affordable Energy:
Walter Augustine
Geoff Baldwin
Vern Baxter, Ph.D.
drafted and further negotiated the New Orleans Least-Cost Resource Planning
Joseph Bernstein
Larry Campisi
Ordinance (14629 M.C.S.), creating the first and most comprehensive least-cost regulatory
Ron Cuccia
planning process in the region.
Rep. Irma Dixon
Gary Esolen
Marina E. Espina
commissioned world renowned energy expert Amory Lovins to conduct a study on
Mildred Fossier
the potential saving of least-cost energy planning in New Orleans.
Gayle Gagliano
Tony Gagliano
Mark Gonzalez
conducted the "Outreach Program on Least-Cost Energy Planning" which recently
Harold Green
won national recognition.
Harry Greenberger
Dione Harmon
Tika Hasslock
alerted the New Orleans community to the economic and environmental problems
Arnold Hirsch, Ph.D.
Saundra MacD. Hunter, Ph.D.
surrounding the Grand Gulf nuclear power plant while also developing realistic solutions.
Irwin Isaacson
Sandy Krasnoff
scaled back an 18% natural gas rate increase request while also achieving long term
Steven Lindsley
David Marcello
gas policy reforms.
Thomas Milliner
Sen. Marc Morial
Mary Lee Orr
provided energy efficiency consulting for a variety of public and private entities.
Julianna D. Padgett
New Orleans Public Schools Superintendent Everett J. Williams credits the Alliance with
Stuart I. Phillips, M.D.
Virginia Plauche
providing the "the awareness of energy conservation."
Staci Rosenberg
Katherine B. Senter
served on and provided research to the Louisiana Task Force on Global Warming,
Jessie Smallwood
Doris E. Vicknair
an official interdepartmental state committee charged with developing policy initiatives
George Ethel Warren
regarding global warming and its impact on Louisiana.
August Weber
Lucille Williams
Kalamu Ya Salaam
As a membership organization, the Alliance provides services directly to its members
Lea Young
through educational workshops, information updates and news alerts, publication of Bright
Michael E. Zimmerman, Ph.D.
*Also Board Members
Ideas quarterly newsletter, responses to questions about energy efficient products, and
leadership training. The Alliance gives its members an opportunity to become involved in
ADMINISTRATION
Jacqueline H. Baron
making a change and to be part of the movement for a fair utility policy.
Alliance for Affordable Energy
Major Activities and Accomplishments-April, 1992 - April, 1993
Least Cost Planning - New Orleans
In July 1991, the City of New Orleans (which constitutes its own utility regulatory
jurisdiction, separate from the Louisiana Public Service Commission) adopted a
comprehensive Least-Cost Resource Planning ordinance, making it the first utility
regulatory authority in the Deep South to adopt a full-featured integrated resource planning
process. The ordinance was originally drafted by the Alliance for Affordable Energy and
was perfected through a negotiation process including the utilities, the regulators and the
Alliance. These cutting edge regulations borrowed from the most successful approaches
in the nations, while adding some important new features that have since been adopted
elsewhere. Because of the negotiated nature of the ordinance, a collaborative working
group process was largely in place from the inception and was well underway by April of
1992. Up until that time, the collaborative had made rapid progress on resolving some of
the most difficult policy issues such as resource screening criteria, quantification of
external environmental costs, avoided cost principles, and cost recovery mechanisms; and
a first pilot program had been developed in detail. Since April, the Alliance has continued
to participate actively in the collaborative; however very little progress was made after the
regulator did not act on recommendations and the utility neglected to consult with the
collaborative on the specifics of its first least cost plan which was filed on December 1,
1992. In February 1993, the Alliance intervened in the regulatory proceeding after
determining that the plan as filed is flawed.
Throughout this period, the Alliance has continued to carry out a community based
educational outreach campaign on least cost planning. The campaign received recognition
in Energy Education on the Move: A National Energy Education Survey and Case Studies of
Outstanding Programs.
Least Cost Planning - Louisiana
Resulting from the Alliance's activities, the Louisiana Public Service Commission
initiated a series of hearings concerning statewide least cost planning. The Alliance
provided testimony twice and proposed comprehensive least cost planning guidelines
based closely on the New Orleans regulations. While the LPSC has not moved toward
adopting LCP guidelines, Louisiana Power and Light filed a least cost plan with the LPSC at
the same time it and its sister company, New Orleans Public Service Inc., filed a plan with
the New Orleans City Council. The Alliance subsequently intervened at the LPSC.
Natural Gas Regulation
The Alliance actively challenged a request by NOPSI for an immediate 18% increase
in natural gas bills. A settlement was eventually reached which scaled the increase back
to an 8.8% spread out over two years. The Alliance was also able to achieve some long
term policy reforms as part of the settlement.
Agrilectric Avoided Costs
The Alliance filed suit against the Louisiana Public Service Commission, Gulf States
Utilities, and Agrilectric Power Partners, Ltd. on October 24, 1992, for allowing Agrilectric,
an independent power producer, to skip out on a $5.2 million debt to rate payers of Gulf
States Utilities. In 1987, the LPSC approved a levelized avoided cost plan for Agrilectric,
based on a projection of increasing avoided costs. In 1992, after projected avoided costs,
upon which the levelization was based, failed to materialize, the LPSC secretly absolved
Agrilectric of its debt.
Foreign Investments by Registered Holding Companies
In September 1992, the Alliance for Affordable Energy and Environmental Action
jointly petitioned the Securities and Exchange Commission to reject the application of
Entergy Corporation to purchase a power plant and electric distribution system in
Argentina. The purchase of foreign power plants and facilities by a registered holding
company was clearly prohibited by the Public Utility Holding Company Act. Within weeks
of the filing of the petition, Sen. J. Bennett Johnston, acting upon the urging of Entergy
Corporation, pushed through amendments to the omnibus national energy legislation
package to weaken regulatory authority over investments in foreign utilities.
Proposed Merger of Entergy and Gulf States Utilities
The Alliance has raised a series of questions over the proposed merger of Entergy
Corporation and Gulf States Utilities. If consummated, the merger would create the
largest utility company in the U.S.-with assets of $21 billion. The Alliance has developed
a series of conditions, including provisions for least cost planning and consumer
protections, which should be included in any merger. The Alliance is actively participating
in the merger hearing at the Louisiana PSC.
Energy Assurance Program
The Alliance is developing provisions for an Energy Assurance Program for the city
of New Orleans which would provide direct benefits to low-income rate payers and would
include an energy efficiency component.
Other Activities
As a membership organization, the Alliance provided services directly to its
members through educational workshops, information updates and news alerts, publication
of Bright Ideas quarterly newsletter, advice on questions about energy efficient practices,
and leadership training designed to help citizens participate in the utility decision-making
process. During the last year, the Alliance began a new long-range organizational planning
process and has initiated a series of community service projects such as installing energy
efficiency measures in 45 low income households in conjunction with the Christmas in
October program.
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